Exceptions To The General Rule of Communication To The Acceptance
Exceptions To The General Rule of Communication To The Acceptance
Exceptions To The General Rule of Communication To The Acceptance
Unilateral contract: the communication of acceptance is waved in a certain number of situations. The
clearest example of this is in relation to unilateral offers, where the need for communication is waved or
implied by conduct. The leading authority is Carlil v carbolic smoke ball company. A similar situation
would apply in reward cases where a reward is offered in return for lost property. All those who
searched for the item in questioned need not informed the offeror of their intention to accept the offer ;
the acceptance is complete when the finder returns the item to the offeror [ upon completion of the
requested act]. It is stated in Dolia V Four mill Bank Nominees that acceptance of unilateral offer
requires complete performance. Goff LJ held in Dolia that the offeror may revoke at any time up to the
point that the act has been fully performed,subject to the qualifications that once the performance has
commenced, the offeror is under an implied obligation not to prevent the performance.
Postal rule: The postal rule was set down in Adams V lindsell and can be seen as a further exception to
the rule that acceptance has to be communicated to the offeror. Where post is deemed to be the proper
means of communication, the acceptance takes effect from the moment the letter of acceptance is
properly posted. A letter is properly posted when it is put in to an official letter box or in to the hands of
an employ of the post office who is authorized to receive letters. It isn’t properly posted by putting it in
to the hands of a postman who is only authorized to deliver letters[RE London and Northern land ex
parte jones]. However, note that the rule is only applies only to the letters of acceptance, not to letters
revoking an offer.
The postal rule places greater burden on the offeror,rather than the offere.
The postal rule applies even where the acceptance is delayed or lost in the post[ Household fire
insurance v grant] but it must be reasonable for the offere to use post as a means of communication of
acceptance [ henthorn v fresor] in Henthorn vs fraser, lord herschell, remarked, “ where the
circumstances are such that it must have been with in the contemplation of the parties that, according
to the ordinary uses of mankind the post might be used as a means of communicating the acceptance of
an offer, the acceptance is complete as soon as it is posted”.
In Household fire insurance v grant, it was held that a contract was made at the moment the letter of
allotment[acceptance] was posted. The offeror doesn’t need to know of the letter being posted
whenever the offere posts the letter of acceptance the acceptance is validly made even if the letter gets
lost or the offeror doesn’t receive in time or doesn’t receive it at all,the acceptance won’t be
hampered,this has been furthered developed in Brownlie v four seasons by lord sumption, who clarified
that in case the letter never arrives; the risk lies with the offeror.
Postal Acceptance will not be reasonable in the following four circumstances;
The singaporian case of Chwee Kin Keong V Digi and mall.com Pte Ltd.
Held that it would be sensible to avoid the postal rule and require a receipt.
The postal rule applies to non-instantaneous modes of communication and was applied for
acceptance by telegram and Cowan v o’connor acceptance took place when the telegram was
posted at the post office.this decision is based on the assumption that sending of the
assumption that thesending of a teegram is analoguous to the mailing of a letter.
Offeror’s Fault: